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May S&P 500 Wrap And Pivot Point Values For The Next Month

Published 05/31/2020, 01:16 AM
Updated 07/09/2023, 06:31 AM

MAY'S PERFORMANCE


Further to my post of May 25, the SPX didn't quite reach its potential R1 target of 3095.86 for the month of May. Rather, it hit a high of 3068.88 by month's end and was just 24.57 points shy of that level, as shown on the following monthly chart.

However, in my post of May 18, I gave the SPX a 55% chance of moving higher, when its price was 2863.70. Since then, it gained 205.18 points in nine trading days into the end of May.

So, all in all, I'd have to say that the the bulls were a little more than 55% successful in moving this market higher, even though it didn't quite make its R1 target.

JUNE TARGETS


The pivot point support/resistant values/targets for the S&P 500 Index (SPX) for the entire month of June are based on the high/low/close of the May monthly candle, as shown on the following pivot point calculator.

Pivot Point Calculator

The PP of each monthly candle is depicted as a blue cross on the chart of the SPX below.

You can see, at a glance, where the current price is relative to those...giving an indication as to its relative strength/weakness as the price moves above/below each one in the coming days/weeks/months.

As of Friday's close, it's well above March, April and May's PP and pierced through February's PP of 3067.86. Price has fought through all of 2018, half of 2019, and well over half of 2020's overhead resistance since the March low, with relatively less (and recent) overhead resistance left to overcome.

R1 sits at 3153.3066, which, together with February's PP of 3067.86, will act as near-term resistance, as well as targets.

The closer the SPX gets to its all-time high at 3393.52, the nearer the Balance of Power will reach an overbought condition. However, that does not automatically mean that it will sell off at that point or that the price can't go much higher. Rather, it may just continue to rally more slowly over time.

Near-term support sits at May's PP at 2959.8833. A drop and hold below that level may see price reach S1 at 2850.8866, or lower.

S&P 500 Monthly Chart

SUMMARY


We may see, either a pause in direction, or some profit-taking on Monday and beyond, as the markets digest the effects of this past week's riots in Minneapolis and St. Paul, and other cities across America...particularly, with respect to the damages caused to many businesses, as they were set to open in June after the COVID-19 pandemic months' long shutdown.

I hear that many more riots are planned for the weekend in at least 50 cities. Who knows if this will spread to other countries, as they're also trying to rebuild their economies caused by the global pandemic...we'll see what happens.

Latest comments

As at 2:40 pm ET, the SPX has gained 168 points since I wrote the above article 5 days ago.
It blew right through June's R1 target of 3153, as it hit a high, so far today, of 3211.88. R2 sits at 3262.
You completely disregard the fact rhat 40M americans are out if work and the only reason personal income is up is stimulus money fallen from the sky. I am as much a technical analyst as anyone. But im sorry...this is a “pivot point” that needs to look deeper than technicals. This market is beyond its means on nearly every fundamental measure. Put the charts away Cathy and wise up.
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